Washington State Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

A real estate agent must disclose their agency relationship to a potential buyer at the first substantive conversation about a specific property. This requirement is in place to ensure transparency and to protect the interests of all parties involved in a real estate transaction.

The rationale behind this rule is to inform the buyer of the agent's obligations and who they represent, which helps the buyer make informed decisions. In this context, a substantive conversation refers to discussions that go beyond general information and touch on the specifics of a property, including its features, potential pricing, or the buyer's interest.

Disclosing the agency relationship at this point allows buyers to understand if the agent is working in their best interest or if they represent the seller's interests, which is a critical factor in the buyer's decision-making process. This encourages a level of fairness and integrity within the real estate transaction process.

Other options suggest disclosing the agency relationship at inappropriate times in the transaction process, such as only when a sale is imminent or at the closing, which would not provide the buyer with the necessary information to engage in negotiations or to assess representation prior to committing to actions regarding the property.